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Drawing correct resistance and support-lines

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  • #1,461
  • Apr 24, 2008 12:15pm Apr 24, 2008 12:15pm
i was readin,trying to benefit from ff when i came accros this interesting thread abt my lovely trading style.nice thread.so,i want to lay some question,so that every one around can help me put a light on it.
i was trading triange,wedges and channel break before,but i left do to the false breakout i experience in arrow.
1-can anyone pls help explain on how to avoid false breakout.
2-is it true that large candle ( which break the trend line)can be good in catching a real breakout
3-which indicator can i use as a second hand tool,to confirm entry.
4-some breakout are continouation,while others are reversal,but i have seen situations where price break in the opposite direction which opposes where it should eventualy go.what should i do in this case?
  • #1,462
  • Apr 24, 2008 12:19pm Apr 24, 2008 12:19pm
continou from previou post...by me...folastevo,,,
5-i discovered this thread,after taking my last trade on usd/cad on 30m but fails to show on 1h time frame,where i trade a triangle formation and i make 14pips,
a-does timeframe has effect on the validity of the pattern.
b-like i said,i exited at 14pips profit,but but the trend still continou even as i am writting,but i am scared to join cos i dont know when it will reverses,so i will apreciate any advise on tp and sl so i will avoid early exit.
6-my strategy is to enter at the open price of the next candle following the breakout,pls is this a good entry point.
  • #1,463
  • Apr 24, 2008 12:20pm Apr 24, 2008 12:20pm

continou from previous post
7-just like the usd/cad which i just traded,price has already breakout on 5m chart but fails to break on 30m,so i enter at the close of the candle following the 5m candle but it whent against me as the price move back into the triangle and i exit my position,then updated my trendline as the false breakout on 5m produce a new swing low.so,i keep watching and a time comes when a candle break out on 5m again but i wait untill the next candle also breakout on 30m,so i entered at the open of the candlefollowing the 30m breakout,and(though very slow) i profit from it.
a-pls what can you advise on my entry point,as price do breakout on lower time frame but faill to break on higher.or should i not take a trade which doesnt breakout on higher timeframe.
b-also,which time frame can you recommend as a valid breakout.
  • #1,464
  • Apr 24, 2008 12:26pm Apr 24, 2008 12:26pm
continou from folastevo

hope,my long question is not frustrating.pls do answer my questions as i have read over and over trading chart patterns on txtbook but when doing it in real life gets complex.
so,i feel getting the real thing is from experiece traders.
i would have love to post the chat of the trade i just mention and see how it keeps going on my direction,but i am out(early ounting) but the server fails to upload it from my desktop.and i have contacted the administrator of ff.
i also have a chart pattern sofware which i love to share,it alert me of intraday and daily unfolding pattern.once the admin solve the uploading problem,i will share it with you guys.
thanks.
  • #1,465
  • Apr 24, 2008 6:00pm Apr 24, 2008 6:00pm
Quoting Bones
I understand where you coming from joypips ,and I know the chart is a bit off subject.
There are not many indicators though; the coloured boxes are just price zones, and you have 1 fib and and 3 MAs.
I know its busy but I just use it for a big picture and was just trying to show confluence so it got busy.
I actually look to trade much more naked ,lol

Maybe this ones a bit more in tune shame it looks like condolidation.
Be cautious trading price patterns after London and US close. Not saying it's impossible, but I found it very risk-increasing. Fake breakouts have increased probability to occur, IMO.
Measure twice, cut once
  • #1,466
  • Apr 24, 2008 9:30pm Apr 24, 2008 9:30pm
hey guys,

anybody catch flag breakout on geepy TF4H... ???
  • #1,467
  • Apr 24, 2008 9:35pm Apr 24, 2008 9:35pm
Cheers for this thread aediaz1, it has helped a lot with my trading along with Jacko's trading the trend. If you read this Jacko - cheers mate, love your work.

Just one question, which one of these do you think is correct? First one, second or neither!?! LOL
Attached Image(s) (click to enlarge)
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  • #1,468
  • Apr 24, 2008 10:05pm Apr 24, 2008 10:05pm
Waiting for breakout on AUDUSD h4.
Attached Image (click to enlarge)
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  • #1,469
  • Apr 24, 2008 10:11pm Apr 24, 2008 10:11pm
Quoting folastevo

continou from previous post
7-just like the usd/cad which i just traded,price has already breakout on 5m chart but fails to break on 30m,so i enter at the close of the candle following the 5m candle but it whent against me as the price move back into the triangle and i exit my position,then updated my trendline as the false breakout on 5m produce a new swing low.so,i keep watching and a time comes when a candle break out on 5m again but i wait untill the next candle also breakout on 30m,so i entered at the open of the candlefollowing the 30m breakout,and(though very slow) i profit from it.
a-pls what can you advise on my entry point,as price do breakout on lower time frame but faill to break on higher.or should i not take a trade which doesnt breakout on higher timeframe.
b-also,which time frame can you recommend as a valid breakout.
Please allow me to answer your Q with my limited knowledge..
It's depends on your style if you prefer lower TF then you have to aim smaller TP.. but I personally like the h4 as confrimation of breakout. and some persons love the m30. I didn't see anyone use the m5 for this method expect in indices.. so my friend.. wise word says.. be patient it's forex not a war game..
  • #1,470
  • Apr 24, 2008 10:15pm Apr 24, 2008 10:15pm
Quoting folastevo
i was readin,trying to benefit from ff when i came accros this interesting thread abt my lovely trading style.nice thread.so,i want to lay some question,so that every one around can help me put a light on it.
i was trading triange,wedges and channel break before,but i left do to the false breakout i experience in arrow.
1-can anyone pls help explain on how to avoid false breakout.
usually you have to wait until the candle almost closing, that would confirmed the breakout. (well at least for me)

Quote
3-which indicator can i use as a second hand tool,to confirm entry.

I like the standar BB and see themiddle as trend.
  • #1,471
  • Apr 24, 2008 10:58pm Apr 24, 2008 10:58pm
aediaz ,thanks for your sharing about R & S,i want ask u about open trade,after price break support do you wait closing candle or open if price break support,?thanks
  • #1,472
  • Apr 24, 2008 11:15pm Apr 24, 2008 11:15pm

Hi There Guy's... Im watching N/U Well seem's bullish to me... but still im waiting for an important breakup... Right now seem's bearish side is strong but if it break's the support line in 30-minut's chart then bang:... But hope so bullish today let's see......
Umair!!!

  • #1,473
  • Apr 24, 2008 11:30pm Apr 24, 2008 11:30pm
Quoting aediaz1
Be cautious trading price patterns after London and US close. Not saying it's impossible, but I found it very risk-increasing. Fake breakouts have increased probability to occur, IMO.
Yea man gotta agree with that
On-site guru & also FF member's' psychiatrist, when not drinking tea
  • #1,474
  • Apr 25, 2008 1:28am Apr 25, 2008 1:28am
Morning, looking for UJ to re-test yesterdays high, got in late on the demo account - practice makes perfect, however I am very careful on Friday's.
Attached Image (click to enlarge)
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  • #1,475
  • Apr 25, 2008 2:00am Apr 25, 2008 2:00am
The G/U is testing the low. I am watching to see if that support level holds.
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  • #1,476
  • Apr 25, 2008 2:05am Apr 25, 2008 2:05am
Dumped UJ when I saw that Doji 0 pips lol, as I said I don't like Fridays!
I am watching the Aussie too just out of interest.
Attached Image (click to enlarge)
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  • #1,477
  • Apr 25, 2008 2:07am Apr 25, 2008 2:07am
Quoting itechdev
Cheers for this thread aediaz1, it has helped a lot with my trading along with Jacko's trading the trend. If you read this Jacko - cheers mate, love your work.

Just one question, which one of these do you think is correct? First one, second or neither!?! LOL
Glad on your behalf, itechdev.

I had this lower TL on e/u daily. 3 times tested and price went below on the 4th attempt. It also correlate with 4h chart and you can clearly see the reaction when price went below this line;
Attached Image (click to enlarge)
Click to Enlarge Name: eudaily.gif Size: 17 KB
Measure twice, cut once
  • #1,478
  • Apr 25, 2008 2:16am Apr 25, 2008 2:16am
I am watching the E/U test support.
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: EUR.USD.4.25.08 A.png Size: 26 KB
  • #1,479
  • Apr 25, 2008 2:17am Apr 25, 2008 2:17am
Quoting Umairs2004

Hi There Guy's... Im watching N/U Well seem's bullish to me... but still im waiting for an important breakup... Right now seem's bearish side is strong but if it break's the support line in 30-minut's chart then bang:... But hope so bullish today let's see......


Umair!!!

Hi there guy's ...well i was keeping an eye on N/U Since from morning... Trend was also seem's to me bullish at morning & N/U Stuggled a lot but bearish side win's... i also said in my last post that if the lowerline of TL Break's in 30-Minutes than ''Bang''...see same happened i enter for short & just close for +30 Pip's for more see screenshot...
Umair!!!
Attached Image (click to enlarge)
Click to Enlarge Name: nu.gif Size: 33 KB
  • #1,480
  • Apr 25, 2008 2:25am Apr 25, 2008 2:25am
Quoting juang
aediaz ,thanks for your sharing about R & S,i want ask u about open trade,after price break support do you wait closing candle or open if price break support,?thanks
I trade it as soon as price enters approx 10 - 15 pips above/below my trendlines. Usually a TL who have been tested 3 times give me more confidence to trade on direct breaks. But on price patterns I can take an direct breakout-trade with 2 times tested lines like flag, pennants etc.

In my experience, this as all about your preferred trading-style. What fits you most ?
Make your own statistic of the probability how often you would have lost/made profit trading candle close or on direct break. Only hard research will give great improvements
Measure twice, cut once
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